For the more discerning tenant

Year after year we’ve been seeing a continuous growth in interest regarding office leases in the renovated tenement houses in Warsaw’s city centre. In my opinion this is mainly the result of two factors. Firstly, in the last few years there have been a few very interesting projects that have come onto the market, so now there is a real offer of a very high quality out there. Secondly, tenants, and particularly renowned companies from the service and finance sectors, are more and more often looking to differentiate themselves through their office premises, so they are looking for alternatives to offices in modern skyscrapers, where they can count on the highest office standards but not necessarily on being unique. Apart from excellent locations, a historical value and a high quality of construction, renovated tenement buildings often offer the possibility of tailoring the interior design to suit the client’s individual preferences. Importantly, construction regulations are sometimes more flexible in this regard to such buildings when it comes to permissible solutions.

As for investors, tenement buildings continue to attract German real estate funds. This is mainly due to their locations, which are often prestigious, as well as to their prime tenants. Also the normal size of a single transaction is important, which most often falls within the range of EUR 20 mln to EUR 35 mln, which is an optimal price for many buyers falling within the so-called ‘sweet spot’. The fact that there is relatively little supply of such buildings in Warsaw is relatively is also quite significant – the urban fabric of the city centre Poland’s capital city is still relatively underdeveloped compared to other European capitals.